5 Deadly Mistakes for Solo-Entrepreneurs and Small Business Owners

Most of us start a business because we love to do a certain activity, such as therapy or construction or coaching. So often though our businesses flounder or roller coaster along causing fear and frustration and doubt. We know we are good at what we do, why isn't that enough?

Here are the five deadliest mistakes that solo (and small business) owners make.

1. Thinking that they are in the business of X (psychologist, coach, artist, trainer, selling widgets). Unfortunately, this is a common misperception. The main business is marketing and most of their time will be spent in marketing. Your love of X is what made you start the business, but without marketing, you have no business.

2. Not having a business plan because they aren't borrowing money from a bank. Many solo entrepreneurs and small businesses do not bother with a business plan because they believe they are too small, it is only them so it can be held in their heads or there's no need for one unless you are borrowing money from an investor or bank. A solid business plan serves many purposes. The primary purpose being to explore and clearly lay out what your plans for the business are. It should include tangibles and intangibles such as location, typical/ideal clients, schedules, training, work hours, support staff and/or employee plans, ramp-up planning, marketing strategy, income goals, expenses, cash flow, etc. This is the place where you get clear what you are building. Even if your business is years old, the exercise will strengthen your business and your own understanding of what you and your business really mean.

3. Not having a marketing plan. Often business owners don't even know such a thing could exist much less that it should. Without a plan, marketing is haphazard, and can easily be dropped as we get busy or avoided because we don't like to do it. A marketing plan is a written document that includes what marketing you will do, when and where, metrics you will keep, how often you will review and change it and your expectations from the marketing (name recognition, new clients or customers, list building, etc.). It can take the form of a calendar with all marketing events scheduled. This makes it very easy to follow.

4. Not being able to speak about their business in clear, interesting ways. We've all heard about the elevator speech, but few have actually developed one. You must be able to instantly answer the question "And what do you do?" with words that will engage the listener and draw them into a conversation. You should be able to say what you do for whom and what benefits or results will occur within a single statement or two in 30 seconds or so. Practice it until it is automatic. Additionally, you should be able to talk to someone about what you do, asking them questions that will help you give relevant information so you can frame your answers. Write a list of questions that you've been asked or imagine what you might be asked and practice short answers. Give business cards to everyone you meet.

5. Not having systems in place. Most of us don't think in terms of systems when we are solo professionals or very small businesses. After all, we do most of the work anyway. Systems will allow everything to be done more efficiently. They also make it much easier to delegate when necessary because the instructions are clearly laid out and easy to understand. Systems might include bookkeeping processes, website maintenance, customer lists and customer service, appointment setting, order fulfillment, and pretty much any other operation that occurs in your company. You design the system so that it meets your needs and then document it and follow it. The creativity is in the design, not in the execution!

All blog content is copyrighted, all rights reserved, Mary Anne Fields and Life Unfolds, 2006

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